Freddie Mac Warns of Foreclosure Rental Scam

According to the Los Angeles Times, a new scam is gaining popularity in the rental market. It involves bogus landlords fraudulently renting foreclosed homes to unsuspecting victims. Often, the properties are listed for rent online by individuals who don't have legal ownership of the homes. Freddie Mac, the second largest source of mortgage money in the country, is warning desperate renters to watch out for this scam. Usually, the homes are listed for very low prices and require a large cash deposit prior to rental. Often, applicants don't hear anything back after disclosing private information such as social security numbers and financial data on the rental application. In other cases, the tenant moves in only to later find out that the house has been listed for sale by actual owner and they must move out. To prevent potential of identity theft, it is suggested that renters never fill out an online rental application until the property has been verified as a bona-fide renal.

What do you think can be done to help prevent such scams?

Government Sues Wells Fargo for Mortgage Fraud

The U.S. government has filed suit against Wells Fargo for recklessly underwriting home loans over the last several years. According to CNNMoney, a lawsuit was filed on Tuesday accusing Wells Fargo of recklessly underwriting  hundreds of loans which resulted in the Federal Housing Administration paying out millions of dollars in insurance claims on the defaulted loans.  Additionally, the bank was accused of hiring temporary staff to churn out loans while rewarding employees based on the number of loans processed. The FHA along with the U.S. Attorney's Office and the U.S. Department of Housing and Urban Development have filed similar fraud lawsuits against four other banks, three of which have been settled.

Amazon Begins Offering Loans to Online Merchants

According to msn money, Amazon is now offering loans to its online merchants. Although not officially announced, the program will offer business loans for users who sell products on Amazon.com. This move comes as many people interested in starting a business are unable to acquire traditional loans from banks. The loans are aimed at helping online merchants grow by providing financial means to buy more product. Amazon is said to be lending up to $800,000 to some sellers at interest rates ranging from 1%  to 13% in addition to pre-qualifying certain sellers based on their performance in the company's marketplace. Seller can sign up for the loans directly through their Amazon merchant account, and if approved, interest payments would be automatically deducted from their account.

Would you consider taking out an online loan to help grow your business?